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A well-located hotel in Anaheim has traded hands in a major transaction for the area.
Newport Beach real estate investor MHG Capital has paid $62M, or $247K per room, for the DoubleTree by Hilton Suites Anaheim Resort Convention Center hotel, the Orange County Business Journal first reported.
The transaction is the fourth-largest hotel deal in Orange County this year and the biggest in Anaheim since June 2021.
The seller was the Anaheim-based O'Connell Group, which built the hotel in 2006. The hotel at 2085 South Harbor Blvd. sits next to the Anaheim Convention Center and less than a mile from Disneyland.
MHG funded the purchase with the help of a $40.3M loan from Taiwan Cooperative Bank Ltd. The company owns 11 hotels including this one in Anaheim, including hotels in Taipei, New York and a handful in California, according to The Real Deal.
Though tourism in Anaheim has bounced back, hotel occupancies in the Anaheim and Santa Ana hotel market has not caught up to pre-pandemic highs.
Occupancy averaged about 78% in 2019, but was up to just 72% year-to-date in November 2022, according to the hospitality consulting firm HVS. With average daily rates unlikely to drop, HVS questioned whether hotels would just have to adjust to occupancies that are lower than they were prior to the coronavirus pandemic.
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